Gilat Reports Record Results for The Second Quarter and First Half of 2000.Business Editors PETAH TIKVA, Israel--(BUSINESS WIRE)--Aug. 14, 2000 Gilat Satellite Networks Gilat Satellite Networks is a publicly-traded Israeli company (NASDAQ: GILT. TASE) Gilat designs, develops and markets satellite and hybrid networking products, services and solutions to operators in 85 countries. Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GILTF) today announced revenues of US$108.6 million for the second quarter ended June 30, 2000, an increase of 46 percent over revenues of US$74.4 million for the second quarter 1999. Net income was US$9.1 million (US$0.38 per share). Revenues for the six months ended June 30, 2000 were US$194.5 million, an increase of 38 percent over the first half of 1999, when the company had revenues of US$140.5 million. Net income was US$15.6 million (US$0.65 per share). Gilat Chairman and Chief Executive Officer Yoel Gat remarked, "The performance of our Company is expanding worldwide, with each region benefiting from the market leadership of our products. We are now preparing for the public, nationwide launch of Gilat-To-Home, our largest undertaking to date." Two Firsts for DialAway(R) in China and Mexico Gilat has been awarded China's first large-scale satellite rural telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. network by the Xinjiang Uygur Xin·jiang Uy·gur also Sin·kiang Ui·ghur or Sin·kiang Ui·gur An autonomous region of extreme western China. It came under Chinese control in the 16th century and was the site of a conflict between China and the Soviet Union in 1969. Autonomous Region Posts & Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. Administration. The Xinjiang PTA PTA or parent-teacher association: see parent education. purchased 1050 units of Gilat's DialAway Very Small Aperture Terminal (communications) Very Small Aperture Terminal - (VSAT) A kind of ground station used to contact a communications satellite such as INMARSAT. (VSAT (Very Small Aperture satellite Terminal) A small earth station for satellite transmission that handles up to 56 Kbits/sec of digital transmission. VSATs that handle the T1 data rate (up to 1.544 Mbits/sec) are called "TSATs. ) satellite communications equipment for public call offices to serve the province's remote villages. Each DialAway remote site will support up to three toll-quality voice channels. The Xinjiang province is home to 17 million inhabitants
The game is based loosely on the concepts from SameGame. and covers an area comparable in size to Europe. The Secretaria de Comunicaciones y Transportes (SCT Sacrococcygeal teratoma (SCT) A tumor occurring at the base of the fetus's tailbone. Mentioned in: Prenatal Surgery ) has chosen Gilat to provide Mexico's first Ku-band satellite-based rural telephony network. SCT is purchasing a private, 1400-site DialAway VSAT network for public call offices to serve remote villages in Central and Northern Mexico. The system will be operated by SCT following delivery of the turn-key network, including installation of the hub and remote systems, by Gilat. Spacenet Announces New Contracts Gilat's Spacenet Inc. subsidiary has been selected by Bass Hotels & Resorts(R) to provide and operate a high-speed satellite communications network The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. to 2,000 hotels nationwide. Bass Hotels & Resorts will use its new Skystar Advantage(R) VSAT network primarily for its central reservation central reservation Noun Brit & NZ the strip that separates the two sides of a motorway or dual carriageway central reservation n (BRIT) (AUT) → mediana services provided to hotels, later adding delivery of Internet content to remote sites and kiosks. Bass Hotels & Resorts is a global hotel leader with more than 2,900 hotels in over 95 countries, including Inter-Continental(R), Crowne Plaza This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. (R), Holiday Inn(R), Holiday Inn Express(R) and Staybridge Suites Staybridge Suites is a brand name applied to hotels within the InterContinental Hotels Group. Staybridge Suites Staybridge Suites® is an innovative all-suite hotel brand designed to meet the needs of extended-stay guests. (R). Replacement of Bass Hotels & Resorts' existing VSAT network has begun and is expected to be completed in early 2001. Spacenet also announced its selection by Bob Evans Farms, Inc. to provide and operate a Skystar Advantage VSAT network to connect 400 Bob Evans family restaurants. The highspeed network, which is presently in implementation, will be used to support point of sale and other retail and operations applications. Bob Evans Farms Inc. currently owns and operates 443 family restaurants in 21 states, principally in the East North Central, Mid-Atlantic and Southern United States The Southern United States—commonly referred to as the American South, Dixie, or simply the South—constitutes a large distinctive region in the southeastern and south-central United States. . Gilat Europe Announces Pipeline Monitoring Deal The Gilat Europe GmbH subsidiary has been selected by Logica PLC to provide a satellite communications solution as part of the Ulysses natural gas network control program. Logica will use Gilat's Skystar Advantage Very Small Aperture Terminal (VSAT) network to provide connectivity to 464 sites within the UK as part of the program, known as Ulysses, which will enhance the control, communications and telemetry telemetry Highly automated communications process by which data are collected from instruments located at remote or inaccessible points and transmitted to receiving equipment for measurement, monitoring, display, and recording. systems of BG Transco's 275,000km gas pipeline. Gilat-To-Home On Track for Fourth Quarter Launch Gilat-To-Home Inc., America's first consumer two-way satellite broadband Internet See broadband. service provider, is on target for its official market launch in Fall 2000. With approximately 5,000 pilot "pioneers" on the service today, the company is completing implementation of in-store demo demo - /de'moh/ 1. A demonstration of a product, often of an early version or prototype. A demo is a far more effective way of inducing bugs to manifest themselves than any number of test runs, especially when important people are watching. 2. demo version. 3. systems for the RadioShack and DISH Network See DBS. distribution channels, which are expected to number in excess of 6,000 locations at service launch. Gilat-To-Home recently completed its initial funding of $275 million, with $150 million bank debt--arranged through a consortium of Israeli banks--joining the initial $125 million equity provided by joint venture partners. Gilat-To-Home is a joint venture of Gilat Satellite Networks, Microsoft Corp., EchoStar Communications Corp. and ING Furman Selz Investments. The Gilat shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. , originally scheduled for August 2000, has been rescheduled to mid-October, 2000. The meeting will be asked to consider, among other things, the report of the financials of the Company, the election of directors, the share split announced earlier, an increase in the shares authorized Shares authorized The maximum number of shares of stock of a company allowed in the articles of incorporation, which may be changed only by a shareholder vote. See: Issued and outstanding. shares authorized See authorized capital stock. under the Company's stock option plan and such other matters as may be brought before the shareholders. The notice of meeting will be given in due course. Gilat's teleconference to the financial community, scheduled today at 10:30 AM EST EST electroshock therapy. EST abbr. electroshock therapy in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , will also be broadcast live over the Internet. The event can be accessed at http://www.gilat.com where there will also be a link for downloading downloading - download the necessary software (Real Player 5). About Gilat Satellite Networks Ltd. Gilat Satellite Networks Ltd., with its global subsidiaries Spacenet Inc., Gilat Europe and Gilat Florida Inc., is a leading provider of telecommunications solutions based on VSAT satellite network technology. The Company provides satellite-based, end-to-end enterprise networking The networking infrastructure in a large enterprise with multiple computer systems and networks of different types is extraordinarily complex. Due to the myriad of interfaces that are required, much of what goes on has little to do with the real data processing of the payroll and orders. and rural telephony solutions to customers across six continents Six Continents is a large retail PLC in UK which split into Six Continents Retail known as Mitchells and Butlers plc. The hotels and soft drinks business of Six Continents PLC is now known as InterContinental Hotels Group PLC. , and markets interactive broadband data services. The Company is a joint venture partner, with Microsoft Corp., EchoStar Communications Corp. and ING Furman Selz Investments, in Gilat-To-Home Inc., America's first consumer two-way satellite broadband Internet service provider. Gilat-To-Home is based in McLean, Va. SkyBlaster(TM), Skystar Advantage(R), SkyWay sky·way n. 1. A route regularly used by airplanes; an air lane. 2. An elevated highway. Noun 1. skyway - a designated route followed by airplanes in flying from one airport to another (TM), DialAway(R) and FaraWay far·a·way adj. 1. Very distant; remote. 2. Abstracted; dreamy: a faraway look. faraway Adjective 1. very distant 2. (TM) are trademarks or registered trademarks of Gilat Satellite Networks Ltd. or its subsidiaries. Visit Gilat at www.gilat.com and Gilat-To-Home at www.gilat2home.com. Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The words "estimate", "project", "intend", "expect", "believe" and similar expressions are intended to identify forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat's products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat's products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and partners, inability to attract and retain qualified personnel, inability to protect the Company's proprietary technology and risks associated with Gilat's international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and its location in Israel For additional information regarding these and other risks and uncertainties associated with Gilat's business, reference is made to Gilat's reports filed from time to time with the Securities and Exchange Commission.
Gilat Satellite Networks Ltd.
An Israeli Corporation
Condensed Consolidated Balance Sheets
US dollars in thousands June 30 December 31
----------------------- ---------------------------
2000 1999
---------------------------
(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents 67,418 33,381
Short-term bank deposits and current
maturities of long-term bank deposits 244,130 61,540
Short-term loan to an
associated company
Accounts receivable:
Trade 121,336 111,417
Other 101,435 71,982
Inventories 117,225 81,060
-------------------------
Total current assets 651,544 359,380
-------------------------
Investments and non-current
receivables:
Long-term bank deposits 0 50,000
Investments in companies
and non-current receivables 127,010 58,534
-------------------------
127,010 108,534
-------------------------
Property, plant and equipment:
Cost 264,117 198,555
Less - accumulated depreciation
& amortization 49,761 38,742
-------------------------
214,356 159,813
-------------------------
Other assets and deferred
charges - net 91,902 51,126
-------------------------
1,084,812 678,853
===========================
Liabilities and shareholders' equity
Current liabilities:
Short-term bank credit 30 6,986
Accounts payable and accruals:
Trade 52,565 39,488
Accrued expenses 29,800 27,833
Other 21,925 19,766
---------------------------
Total current liabilities 104,320 94,073
---------------------------
Convertible subordinated notes 350,000 75,000
Accrued severance pay 3,354 1,868
Other long-term liabilities 23,337 8,089
---------------------------
Total liabilities 481,011 179,030
---------------------------
Shareholders' equity:
Share capital and additional
paid in capital 616,259 527,116
Capital fund (3,360) (2,557)
Accumulated deficit (9,098) (24,736)
---------------------------
603,801 499,823
---------------------------
1,084,812 678,853
===========================
Gilat Satellite Networks Ltd.
An Israeli Corporation
Condensed Consolidated Income (Loss) Statements
(Unaudited)
Six months ended Three months ended
US dollars in thousands June 30 June 30
----------------------- -------------------- --------------------
2000 1999 2000 1999
-------------------- --------------------
Revenues 194,547 140,498 108,603 74,376
Cost of revenues 121,644 79,583 69,219 42,301
------- ------- -------- -------
Gross profit 72,903 60,915 39,384 32,075
Research and development
costs:
Expenses incurred 16,089 11,347 8,414 5,662
Less - grants 1,037 1,016 525 835
------- ------- -------- -------
15,052 10,331 7,889 4,827
------- ------- -------- -------
Selling, general and
administrative expenses 41,854 31,059 22,584 16,625
------- ------- -------- -------
Operating Income 15,997 19,525 8,911 10,623
Financial income
(expenses) - net (806) 1,076 (865) 1,457
Other income - net 58 - 58
------- ------- -------- -------
Income before taxes
on income 15,191 20,659 8,046 12,138
Taxes on income (201) (485) (104) (200)
------- ------- -------- -------
Income after taxes
on income 14,990 20,174 7,942 11,938
------- ------- -------- -------
Share in profits (losses)
of associated companies 372 (72) 902 148
Minority Share in losses
of a subsidiary 276 276
------- ------- -------- -------
Net income 15,638 20,102 9,120 12,086
======= ======= ======== =======
Basic $0.72 $1.01 $0.41 $0.58
======= ======= ======== =======
Diluted $0.65 $0.97 $0.38 $0.56
======= ======= ======== =======
Weighted average number
of shares used in
computation of earnings
per share (in Thousands)
Basic 21,816 19,850 22,440 20,951
======= ======= ======== =======
Diluted 23,910 20,707 24,247 21,755
======= ======= ======== =======
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